Comcast Corporation is an American telecommunications giant and the largest mass media and home entertainment provider in the world by revenue. As the country’s largest cable TV provider, Comcast provides digital cable, high-speed internet, home phone and home security services. Additionally, it holds a 33% stake in Sky, a major pan-European television company, and owns NBCUniversal, a media and entertainment production and distribution company.
Brandon Nispel is a KeyBanc Capital Markets analyst who upgraded Comcast’s stock CMCSA, -0.21% to overweight from sector weight late Monday, while downgrading the stock of Charter Communications Inc. CHTR, -2.63%. In his report, Nispel noted that fundamentals for Comcast’s cable business seem likely to be better than Charter’s, making it the better cable play. Drawing on this, he set a target price of $44 on the stock and advised potential investors to take a look at it. Nispel noted that Comcast’s ability to maintain capital intensity in the range of 11-12%, as well as a potential reversion in broadband subscriber growth, could make it a more attractive option than Charter. He also suggested that investing in a combination of Comcast, WideOpenWest Inc. WOW, +0.82% and Cable One Inc. CABO, +1.56% could give similar returns to investing solely in Charter.